What is Disincorporation?

Under Montana law 7-2‐4901 and 4902, MCA a municipal corporation ceases to exist under either of two circumstances:

1. If a city or town council fails to function for a period of two years, the municipality shall automatically be disincorporated.

2. A disincorporation petition signed by 15 percent of the municipal electors will require that the governing body place the question of disincorporation on the next general or primary election ballot. If 60 percent of the voters approve, the board of county commissioners will adopt an order declaring that the municipality is disincorporated. The assets of the former municipality pass to the county to be used to liquidate any residual obligations